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TFSA Calculator

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TFSA Calculator Powered By Docstoc
					Adviser Assistant
Tax Free Savings Account Calculator

    Starting in 2009, Canadians aged 18 and older can save up to $5,000 every year
    in a TFSA.

    Contributions to a TFSA will not be deductible for income tax purposes but
    investment income, including capital gains, earned in a TFSA will not be taxed,
    even when withdrawn.

    Unused TFSA contribution room can be carried forward to future years.

    You can withdraw funds from the TFSA at any time for any purpose.

    The amount withdrawn can be put back in the TFSA at a later date without
    reducing your contribution room.

    Neither income earned in a TFSA nor withdrawals will affect your eligibility
    for federal income-tested benefits and credits.

    Contributions to a spouse’s TFSA will be allowed and TFSA assets can be
    transferred to a spouse upon death.




                               Begin Calculation
Tax Free Savings Account - Calculator Inputs

       Current Age                                  18
       Age of Retirement                            65
       Annual Contribution                   $   1,500

       Contribute Until Retirement                Yes
       If no, contribute until which age?
       Yes         No                   65
       Rate of Return (Savings Int. %)           8.00%

       Average Tax Rate (Marginal)               18.00%


                             View Summary

                             Previous Page
Tax Free Savings Account - Summary                                                                                         TFSA vs. Normal Account


Annual Contribution                                 $                     1,500.00                       $2,000,000
Rate of Return                                                               8.00%                       $1,800,000
                                                                                                         $1,600,000
After Tax                                                                    6.56%                       $1,400,000
                                                                                                         $1,200,000
Total Contributions                                 $                    70,500.00                       $1,000,000
                                                                                                           $800,000
Remaining Contribution Room                         $                   164,500.00                         $600,000
                                                                                                           $400,000
Total Proceeds @ Maturity 1 - TFSA                  $                   679,350.23                         $200,000
                                                                                                                 $-
Total Proceeds @ Maturity - Savings                 $                   430,152.06
                                                                                                                       1     6   11 16 21 26 31 36 41 46 51 56
Difference                                          $                   249,198.17
1
    Maturity is the last year of deposits                                                                             TFSA           Savings Account (Value After Tax)
Value at the      Age              Annual           TFSA            Savings Account Difference             Cumulative    Unused
end of Year                        Deposit                          (Value After                           Contributions Cumulative
                                                                    Tax)                                                 Contribution
                                                                                                                         Room

              1            19       $       1,500   $       1,500   $       1,500    $               -      $    1,500             3,500
              2            20               1,500           3,120           3,098                   22           3,000             7,000
              3            21               1,500           4,870           4,802                   68           4,500            10,500
              4            22               1,500           6,759           6,617                  143           6,000            14,000
              5            23               1,500           8,800           8,551                  249           7,500            17,500
              6            24               1,500          11,004          10,612                  392           9,000            21,000
              7            25               1,500          13,384          12,808                  576          10,500            24,500
              8            26               1,500          15,955          15,148                  807          12,000            28,000
              9            27               1,500          18,731          17,642                1,090          13,500            31,500
             10            28               1,500          21,730          20,299                1,431          15,000            35,000
             11            29               1,500          24,968          23,131                1,838          16,500            38,500
             12            30               1,500          28,466          26,148                2,318          18,000            42,000
             13            31               1,500          32,243          29,363                2,880          19,500            45,500
             14            32               1,500          36,322          32,789                3,533          21,000            49,000
             15            33               1,500          40,728          36,440                4,288          22,500            52,500
             16            34               1,500          45,486          40,331                5,156          24,000            56,000
             17            35               1,500          50,625          44,477                6,149          25,500            59,500
             18            36               1,500          56,175          48,894                7,281          27,000            63,000
Tax Free Savings Account - Summary                                                                                           TFSA vs. Normal Account


Annual Contribution                                 $                     1,500.00                         $2,000,000
Rate of Return                                                               8.00%                         $1,800,000
                                                                                                           $1,600,000
After Tax                                                                    6.56%                         $1,400,000
                                                                                                           $1,200,000
Total Contributions                                 $                    70,500.00                         $1,000,000
                                                                                                             $800,000
Remaining Contribution Room                         $                   164,500.00                           $600,000
                                                                                                             $400,000
Total Proceeds @ Maturity 1 - TFSA                  $                   679,350.23                           $200,000
                                                                                                                   $-
Total Proceeds @ Maturity - Savings                 $                   430,152.06
                                                                                                                         1     6   11 16 21 26 31 36 41 46 51 56
Difference                                          $                   249,198.17
1
    Maturity is the last year of deposits                                                                               TFSA           Savings Account (Value After Tax)
Value at the      Age              Annual           TFSA             Savings Account Difference              Cumulative    Unused
end of Year                        Deposit                           (Value After                            Contributions Cumulative
                                                                     Tax)                                                  Contribution
                                                                                                                           Room

             19            37               1,500           62,169          53,602                 8,568          28,500            66,500
             20            38               1,500           68,643          58,618                10,025          30,000            70,000
             21            39               1,500           75,634          63,963                11,671          31,500            73,500
             22            40               1,500           83,185          69,659                13,526          33,000            77,000
             23            41               1,500           91,340          75,729                15,611          34,500            80,500
             24            42               1,500          100,147          82,197                17,950          36,000            84,000
             25            43               1,500          109,659          89,089                20,570          37,500            87,500
             26            44               1,500          119,932          96,433                23,498          39,000            91,000
             27            45               1,500          131,026         104,259                26,767          40,500            94,500
             28            46               1,500          143,008         112,599                30,410          42,000            98,000
             29            47               1,500          155,949         121,485                34,464          43,500           101,500
             30            48               1,500          169,925         130,954                38,970          45,000           105,000
             31            49               1,500          185,019         141,045                43,974          46,500           108,500
             32            50               1,500          201,320         151,798                49,523          48,000           112,000
             33            51               1,500          218,926         163,256                55,670          49,500           115,500
             34            52               1,500          237,940         175,465                62,475          51,000           119,000
             35            53               1,500          258,475         188,476                70,000          52,500           122,500
             36            54               1,500          280,653         202,340                78,314          54,000           126,000
Tax Free Savings Account - Summary                                                                                          TFSA vs. Normal Account


Annual Contribution                                 $                       1,500.00                      $2,000,000
Rate of Return                                                                 8.00%                      $1,800,000
                                                                                                          $1,600,000
After Tax                                                                      6.56%                      $1,400,000
                                                                                                          $1,200,000
Total Contributions                                 $                      70,500.00                      $1,000,000
                                                                                                            $800,000
Remaining Contribution Room                         $                     164,500.00                        $600,000
                                                                                                            $400,000
Total Proceeds @ Maturity 1 - TFSA                  $                     679,350.23                        $200,000
                                                                                                                  $-
Total Proceeds @ Maturity - Savings                 $                     430,152.06
                                                                                                                        1     6   11 16 21 26 31 36 41 46 51 56
Difference                                          $                     249,198.17
1
    Maturity is the last year of deposits                                                                              TFSA           Savings Account (Value After Tax)
Value at the      Age              Annual           TFSA               Savings Account Difference           Cumulative    Unused
end of Year                        Deposit                             (Value After                         Contributions Cumulative
                                                                       Tax)                                               Contribution
                                                                                                                          Room

             37            55               1,500            304,605         217,113             87,492          55,500           129,500
             38            56               1,500            330,474         232,856             97,618          57,000           133,000
             39            57               1,500            358,412         249,631            108,781          58,500           136,500
             40            58               1,500            388,585         267,507            121,078          60,000           140,000
             41            59               1,500            421,172         286,555            134,616          61,500           143,500
             42            60               1,500            456,365         306,853            149,512          63,000           147,000
             43            61               1,500            494,375         328,483            165,892          64,500           150,500
             44            62               1,500            535,424         351,531            183,893          66,000           154,000
             45            63               1,500            579,758         376,092            203,666          67,500           157,500
             46            64               1,500            627,639         402,264            225,376          69,000           161,000
             47            65               1,500            679,350         430,152            249,198          70,500           164,500
             48            66                   -            733,698         458,370            275,328          70,500                 -
             49            67                   -            792,394         488,439            303,955          70,500                 -
             50            68                   -            855,786         520,481            335,305          70,500                 -
             51            69                   -            924,248         554,624            369,624          70,500                 -
             52            70                   -            998,188         591,008            407,181          70,500                 -
             53            71                   -          1,078,043         629,778            448,266          70,500                 -
             54            72                   -          1,164,287         671,091            493,196          70,500                 -
Tax Free Savings Account - Summary                                                                                       TFSA vs. Normal Account


Annual Contribution                              $                       1,500.00                      $2,000,000
Rate of Return                                                              8.00%                      $1,800,000
                                                                                                       $1,600,000
After Tax                                                                   6.56%                      $1,400,000
                                                                                                       $1,200,000
Total Contributions                              $                      70,500.00                      $1,000,000
                                                                                                         $800,000
Remaining Contribution Room                      $                     164,500.00                        $600,000
                                                                                                         $400,000
Total Proceeds @ Maturity 1 - TFSA               $                     679,350.23                        $200,000
                                                                                                               $-
Total Proceeds @ Maturity - Savings              $                     430,152.06
                                                                                                                     1     6   11 16 21 26 31 36 41 46 51 56
Difference                                       $                     249,198.17
1
    Maturity is the last year of deposits                                                                           TFSA           Savings Account (Value After Tax)
Value at the      Age              Annual        TFSA               Savings Account Difference           Cumulative    Unused
end of Year                        Deposit                          (Value After                         Contributions Cumulative
                                                                    Tax)                                               Contribution
                                                                                                                       Room

             55            73                -          1,257,430         715,115            542,315          70,500                 -
             56            74                -          1,358,024         762,026            595,998          70,500                 -
             57            75                -          1,466,666         812,015            654,651          70,500                 -
             58            76                -          1,583,999         865,283            718,716          70,500                 -
             59            77                -          1,710,719         922,046            788,674          70,500                 -
             60            78                -          1,847,577         982,532            865,045          70,500                 -

				
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posted:10/30/2010
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Description: Adviser Assistant Retirement Calculator illustrates the effects of inflation on income as well calculates the amount of savings an individual needs to retire vs. the projected future value of an individuals long term savings.
Rafael Reis Rafael Reis Director http://www.adviserassistant.com
About Rafael Reis, Director of Operations of Reis Financial Solutions Inc brings his numerous years of money management and management accounting experience towards the creation of his professional spreadsheets and templates. In his personal life he loves to travel, and compete in extreme sports as well as train in amateur boxing.